Brazil launches Plano Safra 2026/27 with R$525 bn for agriculture

The Brazilian federal government unveiled the Plano Safra 2026/27, allocating R$525.1 billion to the agro‑sector. R$384.9 billion is earmarked for crop cost and marketing, while R$140.2 billion will fund investments such as storage, irrigation, and machinery. The program also increases funding for the National Support Program for Medium‑Scale Rural Producers (Pronamp) to R$72.6 billion.

Financial institutions are preparing for heightened demand. Sicoob Credicom projects releasing more than R$1 billion in rural credit, adding to its existing R$1.6 billion portfolio. JPMorgan highlighted a provisional measure (MP) that temporarily eases credit‑risk pressure for the Banco do Brasil, though the bank still faces sizable provisions and profitability concerns.

Agribusiness input suppliers anticipate a rebound in sales as planting for the 2026/27 season approaches. Executives from Syngenta Seeds Brazil noted producer resilience despite higher costs and tighter margins, while regional sales timelines vary, with the southern Rio Grande do Sul and the Cerrado still holding significant pending orders.